We devise an all-optical scheme for the generation of entangled multimode photonic states encoded in temporal modes of light. The scheme employs a nonlinear down-conversion process in an optical loop to generate one- and higher-dimensional tensor network states of light. We illustrate the principle with the generation of two different classes of entangled tensor network states and report on a variational algorithm to simulate the ground-state physics of many-body systems. We demonstrate that state-of-the-art optical devices are capable of determining the ground-state properties of the spin-1/2 Heisenberg model. Finally, implementations of the scheme are demonstrated to be robust against realistic losses and mode mismatch.
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